Big orders lift L&T, margins eyed

Heading north L&T's order book hit a record high in Q1FY26 buoyed by surge in order inflows.

- Ashish Agrawal

Larsen & Toubro Ltd (L&T) investors were elated after the engineering giant reported robust order inflows in the June quarter (Q1FY26), lifting its stock nearly 5% on Wednesday.

Orders in the core Projects & Manufacturing (P&M) business surged 41% year-on-year (y-o-y) to ₹76,600 crore, driven by big-ticket boiler-turbine-generator (BTG) contracts in the energy segment from West Asia.

The region accounted for 38% of total Q1 inflows, as governments ramp up capital expenditure in hydrocarbons, green energy, and power.

The sharp pick-up in orders has boosted L&T's earnings visibility. Its order book rose 25% y-o-y to a record ₹6.13 trillion end-June, equivalent to 3.1x the trailing 12-month P&M revenue.

The pipeline for the rest of FY26 is also strong, up 63% y-o-y at ₹14.81 trillion.

Adding to the momentum, L&T bagged an ultra-mega order, worth over ₹15,000 crore, in hydrocarbons in West Asia on Tuesday.